You are here

Zero-Emission Facilities Production Tax Credit

Eligibility 
Commercial
Savings Category 
Photovoltaics
Maximum Rebate 

Not specified

Program Info
Start Date 

01/01/03

Expiration Date 

12/31/2020

State 
Oklahoma
Program Type 
Corporate Tax Credit
Rebate Amount 

0.0025/kWh - 0.0075/kWh for 10 years; amount varies depending on when the facility is placed in operation and when electricity is generated.

Provider 
Oklahoma Department of Commerce

'''''Note: No credits will be paid during 2011 for electricity produced from July 1, 2010 - June 30, 2011. But any credits that accrue during that time period will be paid during the 2012 tax year.'''''

For tax years beginning on or after January 1, 2003, a state income tax credit is available to producers of electric power using renewable energy resources from a zero-emission facility located in Oklahoma. The zero-emission facility must have a rated production capacity of one megawatt (1 MW) or greater. (The initial legislation required a 50 MW minimum capacity, but HB 1174 of 2006 reduced the minimum to 1 MW.) The facility must be placed in operation after June 4, 2001, and the electricity must be sold to an unrelated party.

The amount of the credit varies depending on when the electricity is generated (see below) and may be claimed for electricity generated on or after January 1, 2003 during a 10-year period following the date that the facility is placed in operation (after June 4, 2001).

Eligible renewable energy resources include wind, moving water, sun, and geothermal energy. The construction and operation of the zero-emission facility must result in no pollution or emissions that are or may be harmful to the environment, as determined by the Department of Environmental Quality.

'''Facilities placed in operation on or after January 1, 2003 and before January 1, 2007:'''

For electricity generated on or after January 1, 2003, but prior to January 1, 2004, the amount of the credit is seventy-five one hundredths of one cent ($0.0075) for each kilowatt-hour of electricity generated. For electricity generated after January 1, 2004, but prior to January 1, 2007, the amount of the credit is $0.0050/kWh. For electricity generated after January 1, 2007, but prior to January 1, 2012, the amount of the credit is $0.0025/kWh.

'''Facilities placed in operation on or after January 1, 2007 and before January 1, 2016:'''

For electricity generated by these zero-emission facilities, the amount of the credit is $0.0050/kWh.

For credits generated before January 1, 2014, the tax credit is freely transferable at any time during the ten years following the year of qualification. This includes transfers or sales from non-taxable entities to taxable entities and transfers or sales from one taxable entity to another. To claim this credit, applicants must complete [http://www.tax.ok.gov/itformcrt2.html Tax Form 511CR, Schedule for Other Credits].

For credits generated on or after January 1, 2014, the Oklahoma Tax Commission can refund the taxpayer 85% of the face value of the tax credits at the taxpayer's request. The direct refund is available to all taxpayers including pass-through entities, but not nontaxable entities. Nontaxable entities will still be able to transfer or sell credits to taxable entities. If the taxpayer does not elect to receive a direct refund, excess credits can be allocated to one or more shareholders, partners, or members of the taxpayer entity.